PINELLAS COUNTY SCHOOL BOARD AND GALLAGHER-BASSETT INSURANCE SERVICE, APPELLANTS,
v.
MORRIS J. RAPSON, APPELLEE
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This workers' compensation case concerns whether an employer must pay 6% interest on permanent partial disability benefits awarded based on loss of wage-earning capacity. The court affirmed the 30% disability award but reversed the interest calculation, holding that the correct interest rate is 12% and accrues only from the deputy commissioner's order date, not from medical improvement.
The court affirmed the 30% permanent partial disability award but reversed the interest provision. Interest accrues at 12% per annum (not 6%) and only from the date of the deputy commissioner's order, because wage-earning capacity cannot become due until the claimant actually demonstrates such loss.
[1] Permanent partial disability benefits based on a loss of wage-earning capacity are not due until the claimant demonstrates such a loss.
[2] Interest on permanent partial disability benefits awarded based on a loss of wage-earning capacity is payable from the date of the deputy commissioner's order, not from t…
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Join FLexlaw to unlock all legal intelligence“A permanent partial disability rating based on a loss of wage-earning capacity cannot become due until the claimant has demonstrated a loss of wage-earning capacity.”
Establishes the key principle that entitlement to benefits must first be demonstrated before the amount becomes due for payment purposes
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Join FLexlaw to unlock all legal intelligenceIn December 1975, appellee suffered a work-related back injury. He received rehabilitation benefits to attend college while jurisdiction was reserved …
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[*908] McCORD, Judge.
Appellants, employer/carrier, appeal from the deputy commissioner’s order awarding appellee 30% permanent partial disability benefits based upon a loss of wage-earning capacity and awarding interest. We affirm in part and reverse in part.
On December 29, 1975, appellee suffered a back injury as a result of a work-related accident. After the accident, pursuant to a previous workers’ compensation order, appellee received rehabilitation benefits to attend college. In that order, the deputy commissioner reserved jurisdiction to determine appellee’s entitlement to permanent partial disability benefits until after he had completed his rehabilitation program. After finishing college, appellee was employed as a teacher by appellant school board.
Appellant reached maximum medical improvement on March 10, 1977. Employer/carrier accepted a 10% permanent impairment rating given by appellee’s doctor and paid 10% permanent partial disability benefits accordingly. Appellee sought greater permanent disability benefits. In his April 1980 order, the deputy commissioner found that appellee is 30% permanently partially disabled based on a loss of wage-earning capacity. He ordered employer/carrier to pay the additional 20% permanent partial disability benefits, dating from 40 weeks following March 10, 1977. He further ordered employer/carrier to pay 6% interest, dating from 40 weeks after March 10, 1977, on the 20% additional benefits awarded.
The award of 6% interest on the additional 20% permanent partial disability from 40 weeks following March 10, 1977, was error. Section 440.20(9), Florida Statutes, provides:
In addition to any other penalties provided by this chapter for late payment, if any installment of compensation is not paid when it becomes due, the employer or carrier shall pay interest thereon at the rate of 12% per annum from the date the installment becomes due until it is paid, whether such installment is payable without an order or under the terms of an order. (Emphasis supplied.)
A permanent partial disability rating based on a loss of wage-earning capacity cannot become due until the claimant has demonstrated a loss of wage-earning capacity. Appellee herein had not demonstrated a loss of wage-earning capacity by March 10, 1977, as he was still enrolled in a rehabilitation program at that time, and he did not do so until the hearing before the deputy commissioner. Consequently, the additional 20% permanent partial disability payments did not become due until finality of the deputy commissioner’s order. Thus, interest is payable in this case only from the date of the deputy commissioner’s order, at the rate of 12%. Section 440.20(9), Florida Statutes. Compare Mander v. Concreform Company, 212 So. 2d 631 (Fla.1968); Stone v. Jeffres, 208 So. 2d 827 (Fla.1968), and Cantillo v. Gator Shoe Corp., 389 So. 2d 1245 (Fla. 1st DCA 1980).
We have considered the remaining points raised and find them to be without merit.
Affirmed in part and reversed in part.
LARRY G. SMITH, J., and LILES, WOODIE A., Associate Judge (Retired), concur.
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Citator
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Rejoice Brazil v. Sch. Bd. OF Alachua Cnty. & Lumbermen's Mut. Cas. Co., 408 So. 2d 842 (Fla. 1st DCA 1982)…iginal order in March 1978. The interest allowance on benefits ultimately found due at the time of that order and thereafter was not tolled during appellate review. Stone v. Jeffres, 208 So. 2d 827 (Fla.1968); Pinellas County School Board v. Rapson, 401 So. 2d 907 (Fla. 1st DCA 1981). The interest on back benefits due at the time of the order and each biweekly installment due thereafter accrued from the appropriate due date at the general statutory rate of 6 percent for delinquencies arising before July 1, 19…
Authorities Cited
- Stone v. Jeffres, 208 So. 2d 827 (Fla. 1968)
- Mander v. Concreform Co., Inc., 212 So. 2d 631 (Fla. 1968)
- Cantillo v. Gator Shoe Corp. & Old Republic Ins. Co., 389 So. 2d 1245 (Fla. 1st DCA 1980)